You’ve read the headlines, and know that Apple has reached a settlement with the Federal Trade Commission (FTC) to the tune of $32.5 million in consumer refunds for what many parents cited as unauthorized in-app purchases. You know that for Apple, the problem – at least from the FTC’s perspective – was that once a user enters their password to make a purchase, that password remains active for a 15-minute window, during which time the user can purchase at will.

But you also realize by now that it’s parents who have been the drivers behind the complaints. Starting in 2011 and continuing through to today, parents across the globe have gotten more vocal about their displeasure with apps that allow their children to rack up the charges as they play.

At the same time, the freemium business model remains popular, with good reason. One report noted that 93% of gaming app revenue in 2013 came via the freemium business model, up from 86% in 2012. It’s challenging to make money from apps, and freemium is about as close as industry can get to guaranteeing at least some income.

For developers making apps intended for children, or for those who have made products that happen to appeal to children, the challenge is obvious: how do you develop a successful business model while steering clear of parental complaint and regulatory scrutiny that can damage your business before it even gets off the ground? How do you make your mark as a responsible – and successful – developer?

There are a few places to start in setting up for success in the children’s market:

First, recognize that you’re not just in the business of making apps. You’re in the business of making apps for children. It requires that you understand not just mobile development, but also children’s product development. To take that further, it requires an understanding of how those in the children’s industry create entertainment, products, content, advertising and marketing intended for young consumers. It’s different. It takes into account specific sensibilities that children have related to how they understand and interact with content and sell messaging.

Next, take that knowledge and add to it, by learning about the regulation and self-regulation that exists around advertising and marketing intended for children. Know what the regulations are, and what the regulators are looking at, even if there’s no law yet. There are also self-regulations and industry norms that have been around for decades, and which can help guide responsible product development and marketing. Once you get a handle on all of that, you’ll realize that there are some specific areas of scrutiny that require special treatment in order to stay on the right side of the conversation.

Finally, add that to what you already know when you’re creating products that might appeal to children: the responsibility lies in your hands. Children are not savvy consumers, and the best way to make your mark in the business is to do right by them, and market to them at their level. That sometimes means special sell language, parental controls, a different, more sensible price point than you might see otherwise and more disclosures than you might be used to.

In the end though, if you start with the child in mind, you’ll be able to create robust, successful products that children and their parents can enjoy, while meeting your business goals and leaving the criticism and controversies around freemium models behind.

I am often asked how I got into this line of work. I suppose the simple answer is that finding the pathway to operating a business responsibly and successfully is a challenge I find worthwhile and rewarding.

Developing and marketing products for children and teenagers requires that companies take on special responsibilities to protect the very consumers that they are trying to reach. Children are growing up with tablets and smart phones, and can operate their devices better than most adults. But they are still children, and their “expertise” with technology doesn’t mean that they are able to process marketing techniques and messages, or surf safely across the Internet.

The audience is vulnerable in a number of ways, with cognitive, emotional, social and other areas of development and maturity that haven’t reached levels where they can truly navigate content and commercial material with eyes wide open. The comprehension, critical thinking skills and skepticism available to adults isn’t yet within reach of the young consumer. Responsible industry participants appreciate this and work within that framework, ensuring that young consumers don’t have reason to call on skills that they simply don’t have.

For these reasons and more, the media and marketing industries are a veritable alphabet soup of regulation and self-regulation. FCC, FTC, DOE, CTA, COPPA, FERPA, PPRA, CARU, CFBAI, MPAA, ESRB, MMA – these are just some of the bodies you need to be familiar with in order to do business in the space. And then there are additional societal concerns, advocacy issues, and each company’s core mission and values which further inform the work and business norms. Compliance is about putting this all together, creating the practices and guiding principles through which companies can be responsible, effective and successful.

When done well, compliance encourages creativity, partnership and cohesiveness around an organization’s mission. It helps drive the business forward to achieve goals while serving the consumer. Helping companies embrace the responsibilities that they have to consumers – playing well – is what I do. And when doing what is right and doing what is effective are aligned, everyone wins.

Are you ready? The deadline for compliance with the updated COPPA amendments has come and gone. Will your products stand up to inspection? If not, are you in the process of getting things compliant, or are you overwhelmed, struggling with where to begin?

There’s no doubt that the new COPPA amendments have set the industry abuzz and have created challenges across the board. No matter where you are with your compliance efforts, you’ll want to examine existing processes and practices and create a pathway to get into alignment. This will not only help you with the current rule, but will also help to ensure that you’re not left scrambling in the future.

Here are some tools for getting started:

Step 1: Determine your target audience
Is your product directed to children? If so, are children the primary or secondary audience? Neither? Then are there any areas within your general audience product or service that would be considered directed to children? This is something you’ll need to consider in the short term, and in the future as you update your product or service across time. Little changes can add up to big shifts in the perceived target audience, and that can impact compliance.

Step 2: Assess your product
Take a look under the hood. How was your product built? Are there social networking plug-ins? Is your revenue model dependent on ad networks? What data are you collecting, both overtly and “silently,” without involvement from the user? Do you need it all? These are critical questions, and they’re just the start. Work with your compliance team to conduct a full assessment of your products. Determine what adjustments need to be made now to get into alignment with the law. The process of gathering all of the relevant information and truly understanding your data practices takes time and some digging. When you’re done, be sure to craft the policies and practices that will help guide your teams through the regulation in the future.

Step 3: Update your privacy policy
When was the last time you looked at that privacy policy? Is it up to date? Does it reflect your data handling practices accurately? Is it positioned properly in your product? Is it readable? Does it include all of the required provisions?

This is by no means a simple or a short process. However, if done correctly, it can help to position your business to be in alignment with regulation in the future, and will give your teams the resources they’ll need to develop new products and services that are compliant from the start. It is a necessary, and ultimately cost-saving process, with results that will serve as a roadmap for your future success.

Welcome to PlayWell

When engaging with the youth market, operating responsibly can be your biggest business advantage. PlayWell's mission is to partner with clients to successfully navigate the compliance world and drive your business forward.